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SASB Agricultural Products Standard 2018 PDF
SASB Agricultural Products Standard 2018 PDF
AGRICULTURAL PRODUCTS
Sustainability Accounting Standard
Prepared by the
Sustainability Accounting Standards Board
October 2018
About SASB
The SASB Foundation was founded in 2011 as a not-for-profit, independent standards-setting organization. The SASB
Foundation’s mission is to establish and maintain industry-specific standards that assist companies in disclosing financially
material, decision-useful sustainability information to investors.
The SASB Foundation operates in a governance structure similar to the structure adopted by other internationally
recognized bodies that set standards for disclosure to investors, including the Financial Accounting Standards Board
(FASB) and the International Accounting Standards Board (IASB). This structure includes a board of directors (“the
Foundation Board”) and a standards-setting board (“the Standards Board” or "the SASB"). The Standards Board
develops, issues, and maintains the SASB standards. The Foundation Board oversees the strategy, finances and operations
of the entire organization, and appoints the members of the Standards Board.
The Foundation Board is not involved in setting standards, but is responsible for overseeing the Standards Board’s
compliance with the organization’s due process requirements. As set out in the SASB Rules of Procedure, the SASB’s
standards-setting activities are transparent and follow careful due process, including extensive consultation with
companies, investors, and relevant experts.
The SASB Foundation is funded by a range of sources, including contributions from philanthropies, companies, and
individuals, as well as through the sale and licensing of publications, educational materials, and other products. The SASB
Foundation receives no government financing and is not affiliated with any governmental body, the FASB, the IASB, or
any other financial accounting standards-setting body.
The information, text, and graphics in this publication (the “Content”) are owned by The SASB Foundation. All rights reserved. The
Content may be used only for non-commercial, informational, or scholarly use, provided that all copyright and other proprietary notices
related to the Content are kept intact, and that no modifications are made to the Content. The Content may not be otherwise
disseminated, distributed, republished, reproduced, or modified without the prior written permission of The SASB Foundation. To request
permission, please contact us at info@sasb.org.
SASB standards are designed to identify a minimum set of sustainability issues most likely to impact the operating
performance or financial condition of the typical company in an industry, regardless of location. SASB standards are
designed to enable communications on corporate performance on industry-level sustainability issues in a cost-effective
and decision-useful manner using existing disclosure and reporting mechanisms.
Businesses can use the SASB standards to better identify, manage, and communicate to investors sustainability
information that is financially material. Use of the standards can benefit businesses by improving transparency, risk
management, and performance. SASB standards can help investors by encouraging reporting that is comparable,
consistent, and financially material, thereby enabling investors to make better investment and voting decisions.
1. Disclosure topics – A minimum set of industry-specific disclosure topics reasonably likely to constitute material
information, and a brief description of how management or mismanagement of each topic may affect value creation.
2. Accounting metrics – A set of quantitative and/or qualitative accounting metrics intended to measure performance
on each topic.
3. Technical protocols – Each accounting metric is accompanied by a technical protocol that provides guidance on
definitions, scope, implementation, compilation, and presentation, all of which are intended to constitute suitable criteria
for third-party assurance.
4. Activity metrics – A set of metrics that quantify the scale of a company’s business and are intended for use in
conjunction with accounting metrics to normalize data and facilitate comparison.
The SASB Conceptual Framework sets out the basic concepts, principles, definitions, and objectives that guide the
Standards Board in its approach to setting standards for sustainability accounting. The SASB Rules of Procedure is focused
on the governance processes and practices for standards setting.
It is up to a company to determine the means by which it reports SASB information to investors. One benefit of using
SASB standards may be achieving regulatory compliance in some markets. Other investor communications using SASB
information could be sustainability reports, integrated reports, websites, or annual reports to shareholders. There is no
guarantee that SASB standards address all financially material sustainability risks or opportunities unique to a company’s
business model.
Industry Description
The Agricultural Products industry is engaged in processing, trading, and distributing vegetables and fruits, and producing
and milling agricultural commodities such as grains, sugar, consumable oils, maize, soybeans, and animal feed.
Agricultural products are sold directly to consumers and to businesses for use in consumer and industrial products.
Companies in the industry typically purchase agricultural products from entities that grow such products (either directly or
indirectly) to then conduct value-adding activities (e.g., processing, trading, distributing, and milling). Agricultural
products companies are also involved in wholesale and distribution. Companies in the industry may source a substantial
portion of agricultural commodities from third-party growers in various countries. Therefore, managing sustainability risks
within the supply chain is critical to securing a reliable supply of raw materials and reducing the risk of price increases and
volatility over the long term.
1
Legal Note: SASB standards are not intended to, and indeed cannot, replace any legal or regulatory requirements that may be
applicable to a reporting entity’s operations.
UNIT OF
TOPIC ACCOUNTING METRIC CATEGORY CODE
MEASURE
Gigajoules (GJ),
Fleet fuel consumed, percentage renewable Quantitative FB-AG-110a.3
Percentage (%)
2
Note to FB-AG-250a.3– Disclosure shall include a description of notable recalls, such as those that affected a significant amount of
product or those related to serious illness or fatality.
UNIT OF
ACTIVITY METRIC CATEGORY CODE
MEASURE
Reporting
Cost of agricultural products sourced externally5 Quantitative FB-AG-000.D
currency
3
Note to FB-AG-000.A – Principal crops are those crops that accounted for 10 percent or more of consolidated revenue in any of the
last three fiscal years.
4
Note to FB-AG-000.B – Processing facilities include those facilities that are involved in the manufacturing, processing, packing, or
holding of agricultural products and exclude administrative offices.
5
Note to FB-AG-000.C – Agricultural products are defined as food, feed, and biofuel ingredients that are sourced for use in the entity’s
operations. The scope of agricultural products sourced externally excludes agricultural products grown on land that is owned or
operated by the entity.
Accounting Metrics
1.1 Emissions of all GHGs shall be consolidated and disclosed in metric tons of carbon dioxide equivalents (CO2-e),
and calculated in accordance with published 100-year time horizon global warming potential (GWP) values. To
date, the preferred source for GWP values is the Intergovernmental Panel on Climate Change (IPCC) Fifth
Assessment Report (2014).
1.2 Gross emissions are GHGs emitted into the atmosphere before accounting for offsets, credits, or other similar
mechanisms that have reduced or compensated for emissions.
2 Scope 1 emissions are defined and shall be calculated according to the methodology contained in The Greenhouse
Gas Protocol: A Corporate Accounting and Reporting Standard (GHG Protocol), Revised Edition, March 2004,
published by the World Resources Institute and the World Business Council on Sustainable Development
(WRI/WBCSD).
2.1 Acceptable calculation methodologies include those that conform to the GHG Protocol as the base reference,
but provide additional guidance, such as industry- or region-specific guidance. Examples include, but are not
limited to:
2.1.1 GHG Reporting Guidance for the Aerospace Industry published by International Aerospace
Environmental Group (IAEG)
2.1.2 Greenhouse Gas Inventory Guidance: Direct Emissions from Stationary Combustion Sources published
by the U.S. Environmental Protection Agency (EPA)
2.1.5 Petroleum Industry Guidelines for reporting GHG emissions, 2nd edition, 2011, published by IPIECA
2.1.6 Protocol for the quantification of greenhouse gas emissions from waste management activities
published by Entreprises pour l’Environnement (EpE)
2.2 GHG emissions data shall be consolidated and disclosed according to the approach with which the entity
consolidates its financial reporting data, which is generally aligned with the “financial control” approach
defined by the GHG Protocol, and the approach published by the Climate Disclosure Standards Board (CDSB)
described in REQ-07, “Organisational boundary,” of the CDSB Framework for reporting environmental
information, natural capital and associated business impacts (April 2018).
3 The entity may discuss any change in its emissions from the previous reporting period, including whether the change
was due to emissions reductions, divestment, acquisition, mergers, changes in output, and/or changes in calculation
methodology.
4 In the case that current reporting of GHG emissions to the CDP or other entity (e.g., a national regulatory disclosure
program) differs in terms of the scope and consolidation approach used, the entity may disclose those emissions.
However, primary disclosure shall be according to the guidelines described above.
5 The entity may discuss the calculation methodology for its emissions disclosure, such as if data are from continuous
emissions monitoring systems (CEMS), engineering calculations, or mass balance calculations.
1.1 Scope 1 emissions are defined according to The Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard (GHG Protocol), Revised Edition, March 2004, published by the World Resources Institute
and the World Business Council on Sustainable Development (WRI/WBCSD).
1.2 The scope of GHG emissions includes the seven GHGs covered under the Kyoto Protocol—carbon dioxide
(CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur
hexafluoride (SF6), and nitrogen trifluoride (NF3).
2 The entity shall discuss its emission reduction target(s) and analyze its performance against the target(s), including
the following, where relevant:
2.2 Whether the target is absolute- or intensity-based, and the metric denominator, if it is an intensity-based
target;
2.3 The percentage reduction against the base year, with the base year representing the first year against which
emissions are evaluated toward the achievement of the target;
2.4 The timelines for the reduction activity, including the start year, the target year, and the base year;
2.6 Any circumstances in which the target or base year emissions have been, or may be, recalculated
retrospectively or the target or base year has been reset.
3 The entity shall discuss the activities and investments required to achieve the plans and/or targets, and any risks or
limiting factors that might affect achievement of the plans and/or targets.
4 The entity shall discuss the scope of its strategies, plans, and/or reduction targets, such as how they relate to
different business units, geographies, or emissions sources.
5 The entity shall discuss whether its strategies, plans, and/or reduction targets are related to, or associated with,
emissions limiting and/or emissions reporting-based programs or regulations (e.g., the EU Emissions Trading Scheme,
Quebec Cap-and-Trade System, California Cap-and-Trade Program), including regional, national, international, or
sectoral programs.
6 Disclosure of strategies, plans, and/or reduction targets shall be limited to activities that were ongoing (active) or
reached completion during the reporting period.
1.1 The calculation methodology for fuel consumed shall be based on actual fuel consumed as opposed to design
parameters.
1.2 Acceptable calculation methodologies for fuel consumed include, but are not limited to, methodologies based
on:
1.2.1 Adding fuel purchases made during the reporting period to beginning inventory at the start of the
reporting period, less any fuel inventory at the end of the reporting period
2 The entity shall disclose the percentage of the total amount of fuel consumed by its fleet vehicles that is renewable
fuel.
2.1 Renewable fuel is defined by the U.S. Renewable Fuel Standard (U.S. 40 CFR 80.1401), as fuel that meets all
of the following requirements:
2.1.2 Used to replace or reduce the quantity of fossil fuel present in a transportation fuel, heating oil, or jet
fuel; and
2.1.3 Has lifecycle greenhouse gas (GHG) emissions that are at least 20 percent less than baseline lifecycle
GHG emissions, unless the fuel is exempt from this requirement pursuant to U.S. 40 CFR 80.1403.
2.2 The scope of renewable fuel includes fuel that qualifies for Renewable Identification Numbers (RINs) under the
U.S. Renewable Fuel Standard.
2.3 The percentage shall be calculated as the amount of renewable fuel consumed by the entity’s fleet vehicles (in
GJ) divided by the total amount of fuel consumed by the entity’s fleet vehicles (in GJ).
3 The scope of disclosure includes fuel consumed by vehicles owned or operated by the entity.
4 The scope of disclosure excludes fuel consumed in the transportation of the entity’s products by third parties.
Accounting Metrics
FB-AG-130a.1. (1) Operational energy consumed, (2) percentage grid electricity, (3)
percentage renewable
1 The entity shall disclose (1) the total amount of energy it consumed (excluding fleet vehicles) as an aggregate figure,
in gigajoules (GJ).
1.1 The scope of energy consumption excludes fuel consumed by fleet vehicles, but includes energy from all other
sources, including energy purchased from sources external to the entity and energy produced by the entity
itself (self-generated). For example, purchased electricity, and heating, cooling, and steam energy are all
included within the scope of energy consumption.
1.2 The scope of energy consumption includes only energy directly consumed by the entity during the reporting
period.
1.3 In calculating energy consumption from fuels and biofuels, the entity shall use higher heating values (HHV),
also known as gross calorific values (GCV), which are directly measured or taken from the Intergovernmental
Panel on Climate Change (IPCC), the U.S. Department of Energy (DOE), or the U.S. Energy Information
Administration (EIA).
2 The entity shall disclose (2) the percentage of energy it consumed (excluding fleet vehicles) that was supplied from
grid electricity.
2.1 The percentage shall be calculated as purchased grid electricity consumption divided by total energy
consumption.
3.1 Renewable energy is defined as energy from sources that are replenished at a rate greater than or equal to
their rate of depletion, such as geothermal, wind, solar, hydro, and biomass.
3.2 The percentage shall be calculated as renewable energy consumption divided by total energy consumption.
3.3 The scope of renewable energy includes renewable fuel the entity consumed, renewable energy the entity
directly produced, and renewable energy the entity purchased, if purchased through a renewable power
purchase agreement (PPA) that explicitly includes renewable energy certificates (RECs) or Guarantees of Origin
(GOs), a Green‐e Energy Certified utility or supplier program, or other green power products that explicitly
include RECs or GOs, or for which Green‐e Energy Certified RECs are paired with grid electricity.
3.3.1 For any renewable electricity generated on-site, any RECs and GOs must be retained (i.e., not sold) and
retired or cancelled on behalf of the entity in order for the entity to claim them as renewable energy.
3.3.2 For renewable PPAs and green power products, the agreement must explicitly include and convey that
RECs and GOs be retained or replaced and retired or cancelled on behalf of the entity in order for the
entity to claim them as renewable energy.
3.3.3 The renewable portion of the electricity grid mix that is outside of the control or influence of the entity
is excluded from the scope of renewable energy.
3.4 For the purposes of this disclosure, the scope of renewable energy from hydro and biomass sources is limited
to the following:
3.4.1 Energy from hydro sources is limited to those that are certified by the Low Impact Hydropower Institute
or that are eligible for a state Renewable Portfolio Standard;
3.4.2 Energy from biomass sources is limited to materials certified to a third-party standard (e.g., Forest
Stewardship Council, Sustainable Forest Initiative, Programme for the Endorsement of Forest
Certification, or American Tree Farm System), materials considered eligible sources of supply according
to the Green-e Framework for Renewable Energy Certification, Version 1.0 (2017) or Green-e regional
standards, and/or materials that are eligible for an applicable state renewable portfolio standard.
4 The entity shall apply conversion factors consistently for all data reported under this disclosure, such as the use of
HHVs for fuel usage (including biofuels) and conversion of kilowatt hours (kWh) to GJ (for energy data including
electricity from solar or wind energy).
Accounting Metrics
FB-AG-140a.1. (1) Total water withdrawn, (2) total water consumed, percentage of
each in regions with High or Extremely High Baseline Water Stress
1 The entity shall disclose the amount of water, in thousands of cubic meters, that was withdrawn from all sources.
1.1 Water sources include surface water (including water from wetlands, rivers, lakes, and oceans), groundwater,
rainwater collected directly and stored by the entity, and water and wastewater obtained from municipal
water supplies, water utilities, or other entities.
2 The entity may disclose portions of its supply by source if, for example, significant portions of withdrawals are from
non-freshwater sources.
2.1 Fresh water may be defined according to the local laws and regulations where the entity operates. Where
there is no legal definition, fresh water shall be considered to be water that has less than 1,000 parts per
million of dissolved solids per the U.S. Geological Survey.
2.2 Water obtained from a water utility in compliance with U.S. National Primary Drinking Water Regulations can
be assumed to meet the definition of fresh water.
3 The entity shall disclose the amount of water, in thousands of cubic meters, that was consumed in its operations.
3.1.2 Water that is directly or indirectly incorporated into the entity’s product or service;
4 The entity shall analyze all of its operations for water risks and identify activities that withdraw and consume water in
locations with High (40–80 percent) or Extremely High (>80 percent) Baseline Water Stress as classified by the World
Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct.
5 The entity shall disclose its water withdrawn in locations with High or Extremely High Baseline Water Stress as a
percentage of the total water withdrawn.
6 The entity shall disclose its water consumed in locations with High or Extremely High Baseline Water Stress as a
percentage of the total water consumed.
1.1 Risks associated with water withdrawals and water consumption include risks to the availability of adequate,
clean water resources, including, but not limited to:
1.1.2 Regulatory and financial constraints—such as volatility in water costs, stakeholder perceptions and
concerns related to water withdrawals (e.g., those from local communities, non-governmental
organizations, and regulatory agencies), direct competition with and impact from the actions of other
users (e.g., commercial and municipal users), restrictions to withdrawals due to regulations, and
constraints on the entity’s ability to obtain and retain water rights or permits
1.2 Risks associated with the discharge of water and/or wastewater, include, but are not limited to, the ability to
obtain rights or permits related to discharges, compliance with regulations related to discharges, restrictions to
discharges, the ability to maintain control over the temperature of water discharges, liabilities and/or
reputational risks, and increased operating costs due to regulation, stakeholder perceptions and concerns
related to water discharges (e.g., those from local communities, non-governmental organizations, and
regulatory agencies).
2 The entity may describe water management risks in the context of:
2.2 How risks may vary by discharge destinations, including surface water, groundwater, or wastewater utilities.
3 The entity may discuss the potential impacts that water management risks may have on its operations and the
timeline over which such risks are expected to manifest.
3.1 Impacts may include, but are not limited to, those associated with costs, revenues, liabilities, continuity of
operations, and reputation.
4 The entity shall discuss its short-term and long-term strategies or plan to mitigate water management risks,
including, but not limited to:
4.1 The scope of its strategy, plans, goals and/or targets, such as how they relate to different business units,
geographies, or water-consuming operational processes.
4.2 Any water management goals and/or targets it has prioritized, and an analysis of performance against those
goals and/or targets.
4.2.1 Goals and targets may include, but are not limited to, those associated with reducing water
withdrawals, reducing water consumption, reducing water discharges, reducing aquatic impingements,
improving the quality of water discharges, and regulatory compliance.
4.3 The activities and investments required to achieve the plans, goals and/or targets, and any risks or limiting
factors that might affect achievement of the plans and/or targets.
4.4 Disclosure of strategies, plans, goals, and/or targets shall be limited to activities that were ongoing (active) or
reached completion during the reporting period.
5.1 Whether the target is absolute or intensity-based, and the metric denominator if it is an intensity-based target.
5.2 The timelines for the water management plans, including the start year, the target year, and the base year.
5.3.1 Efficiency efforts, such as the use of water recycling and/or closed-loop systems;
5.3.2 Product innovations such as redesigning products or services to require less water;
5.3.4 Use of tools and technologies (e.g., the World Wildlife Fund Water Risk Filter, The Global Water Tool,
and Water Footprint Network Footprint Assessment Tool) to analyze water use, risk, and opportunities;
and
5.4 The percentage reduction or improvement from the base year, where the base year is the first year against
which water management targets are evaluated toward the achievement of the target.
6 The entity shall discuss whether its water management practices result in any additional lifecycle impacts or tradeoffs
in its organization, including tradeoffs in land use, energy production, and greenhouse gas (GHG) emissions, and
why the entity chose these practices despite lifecycle tradeoffs.
2 The scope of disclosure includes incidents governed by national, state, and local statutory permits and regulations,
including, but not limited to, the discharge of a hazardous substance, violation of pretreatment requirements, or
total maximum daily load (TMDL) exceedances.
3 The scope of disclosure shall only include incidents of non-compliance that resulted in a formal enforcement
action(s).
3.1 Formal enforcement actions are defined as statutorily recognized actions that address a violation or threatened
violation of water quantity and/or quality laws, regulations, policies, or orders, and can result in administrative
penalty orders, administrative orders, and judicial actions, among others. For example, the U.S. Environmental
Protection Agency (EPA) provides guidance on the scope of formal enforcement actions in Informal and Formal
Actions, Summary Guidance and Portrayal on EPA Websites.
4 Violations shall be disclosed, regardless of their measurement methodology or frequency. These include violations for:
4.1 Continuous discharges, limitations, standards, and prohibitions that are generally expressed as maximum daily,
weekly average, and monthly averages
4.2 Non-continuous discharges and limitations that are generally expressed in terms of frequency, total mass,
maximum rate of discharge, and mass or concentration of specified pollutants
Accounting Metrics
FB-AG-250a.1. Global Food Safety Initiative (GFSI) audit (1) non-conformance rate
and (2) associated corrective action rate for (a) major and (b) minor non-
conformances
1 The entity shall disclose its facilities' (1) non-conformance rates with Global Food Safety Initiative (GFSI) recognized
food safety certification programs for (a) major non-conformances, and separately, (b) minor non-conformances.
1.1 A major non-conformance is defined by the relevant GFSI-recognized certification program and includes the
highest severity of non-conformances and required escalation by auditors. Major non-conformances may arise
from a significant risk to food safety, non-compliance with relevant regulatory requirements, and/or failure to
adequately address prior minor non-conformances. Major non-conformances must be corrected in accordance
with the relevant GFSI-recognized certification program under audit.
1.2 A minor non-conformance is defined by the relevant GFSI-recognized certification program and is by itself not
indicative of a systemic problem.
1.3 The entity shall calculate the non-conformance rates as the total number of non-conformances (in each
respective category) identified among its facilities divided by the number of facilities audited.
1.4 The scope of disclosure includes audit results from facilities that are owned and/or operated by the entity.
2 The entity shall disclose the (2) corrective action rates associated with its facilities’ (a) major non-conformances, and
separately, (b) minor non-conformances.
2.1 A corrective action is defined as the completion of an action (generally identified in a corrective action plan),
within the timeline defined by the GFSI-recognized certification program, that has been designed to eliminate
the cause of a detected non-conformance, including the implementation of practices or systems to eliminate
2.2 The entity shall calculate the corrective action rates as the number of corrective actions that address non-
conformances (in each respective category) divided by the total number of non-conformances (in each
respective category) that have been identified.
3.2 CanadaGAP Scheme Version 46 Options B, C, and D and Program Management Manual Version 46
3.5 Global Red Meat Standard (GRMS) 4th Edition Version 4.1
3.6 GLOBALG.A.P. Integrated Farm Assurance Scheme Version 5, Produce Safety Standard Version 4, and
Harmonized Produce Safety Standard
4 The entity may disclose the GFSI-recognized certification program by which its facilities are audited.
1.1 Tier 1 suppliers are defined as suppliers that transact directly with the entity.
1.2 The percentage shall be calculated as the cost of agricultural products sourced from Tier 1 suppliers certified to
an applicable GFSI-recognized certification program divided by the total cost of agricultural products sourced
from all Tier 1 suppliers.
3.2 CanadaGAP Scheme Version 6 Options B, C and D and Program Management Manual Version 6
3.5 Global Red Meat Standard (GRMS) 4th Edition Version 4.1
3.6 GlobalG.A.P Integrated Farm Assurance Scheme Version 5, Produce Safety Standard Version 4 and
Harmonized Produce Safety Standard
4 The entity may disclose the relevant GFSI-recognized certification program to which its suppliers are audited.
FB-AG-250a.3. (1) Number of recalls issued and (2) total amount of food product
recalled
1 The entity shall disclose (1) the total number of food-safety-related recalls issued.
1.1 A food-safety-related recall is defined as removal of a marketed product that occurs when there is reason to
believe that a food may cause consumers to become ill.
2 The entity shall disclose (2) the total amount, in metric tons, of food product subject to recalls.
3 The scope of disclosure includes voluntary recalls initiated by the entity and involuntary recalls requested and/or
mandated by regulatory authorities [e.g., China Food and Drug Administration (CFDA) and U.S. Food and Drug
Administration (FDA)].
4 The scope of disclosure excludes market withdrawals, which are defined as an entity’s removal or correction of a
distributed product that involves a minor violation that would not be subject to legal action by regulatory authorities
or that involves no violation (e.g., normal stock rotation practices).
Note to FB-AG-250a.3
1.1 Notable recalls are those that affected a significant number of units of one product or those related to serious
illness or fatality.
1.2 Relevant information to provide may include, but is not limited to:
1.2.6 Any other significant outcomes (e.g., legal proceedings or consumer fatalities)
Accounting Metrics
FB-AG-320a.1. (1) Total recordable incident rate (TRIR), (2) fatality rate, and (3)
near miss frequency rate (NMFR) for (a) direct employees and (b) seasonal and
migrant employees
1 The entity shall disclose its total recordable incident rate (TRIR) for work-related injuries and illnesses.
1.1 An injury or illness is considered a recordable incident if it results in any of the following: death, days away
from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of
consciousness. Additionally, a significant injury or illness diagnosed by a physician or other licensed health care
professional is considered a recordable incident, even if it does not result in death, days away from work,
restricted work or job transfer, medical treatment beyond first aid, or loss of consciousness. This definition is
derived from U.S. 29 CFR 1904.7.
1.2 The U.S. Occupational Safety and Health Administration (OSHA) provides additional resources for determining
if injuries or illnesses are considered recordable incidents in its guidance for OSHA Forms 300, 300A, and 301.
2 The entity shall disclose its fatality rate for work-related fatalities.
3 The entity shall disclose its near miss frequency rate (NMFR) for work-related near misses.
3.1 A near miss is defined as an unplanned incident in which no property or environmental damage or personal
injury occurred, but where damage or personal injury easily could have occurred but for a slight circumstantial
shift.
3.2 The U.S. National Safety Council (NSC) provides guidance on implementing near miss reporting, including in,
“Near Miss Reporting Systems.”
3.3 The entity may disclose its process for classifying, identifying, and reporting near misses.
4.1 The U.S. Bureau of Labor Statistics (BLS) provides additional guidance for the calculation of rates in, “How to
Compute a Firm’s Incidence Rate for Safety Management” and “Incidence Rate Calculator and Comparison
Tool.”
5.1 OSHA guidance for Forms 300, 300A, and 301 provides guidance on determining whether an incident is
work-related, as well as definitions for exemptions for incidents that occur in the work environment but are
not work-related.
6 The entity shall disclose the rates by each of the following employee categories:
6.1 Direct employees, defined as those employees on the entity’s payroll, whether they are full-time, part-time,
executive, labor, salary, or hourly employees.
6.2.1 Seasonal employees are defined as individuals that work for the entity on a seasonal or other
temporary basis who are not required to be absent overnight from their permanent place of residence.
6.2.2 Migrant employees are defined as individuals that work for the entity on a seasonal or other temporary
basis who are required to be absent overnight from their permanent place of residence, including
employees in the U.S. with H2-A visas.
Accounting Metrics
1.1 Agricultural products are defined as raw materials such as food, feed, and biofuel ingredients that are sourced
for use in the entity’s operations.
1.2 Environmental standards are defined as standards that address environmental impacts related to the
production of agricultural products such as, protection of primary forests, maintenance of surface water and
groundwater quality, and implementation of integrated pest management (IPM) solutions or an Organic
System Plan.
1.3 Social standards are defined as standards that address social impacts related to the production of agricultural
products such as, compensation of the workforce, training and continual monitoring of health and safety risks
associated with applications of agrochemicals, and child-labor practices.
1.4 The percentage shall be calculated as the cost of agricultural products purchased from Tier 1 suppliers that
have been certified to a third-party environmental and/or social standard divided by the total cost of
agricultural products purchased from Tier 1 suppliers.
1.5 Examples of certifications to third-party environmental and social standards include, but are not limited to:
1.5.1 Bonsucro
1.5.7 SA8000
2 The entity shall disclose the percentage of agricultural products it sourced that are certified to a third-party
environmental or social standard, by standard.
2.1 The entity shall calculate the percentage as the cost of agricultural products purchased from Tier 1 suppliers
that have been certified to each respective third-party environmental or social standard divided by the total
cost of agricultural products purchased from Tier 1 suppliers.
2.1.1 For Bonsucro certification, the entity shall disclose whether the agricultural raw materials are certified
to the Bonsucro Production Standard or the Bonsucro Chain of Custody Standard.
2.1.2 For Fairtrade International and Fair Trade USA, the entity shall disclose whether the agricultural
products are certified to the standards for small producer organizations, hired labor, contract
production, traders, independent small holders, or capture fisheries.
2.1.3 For RSPO certification, the entity shall disclose which of the RSPO supply chain models the agricultural
products are certified to: Identity Preserved (IP); Segregated (SG); Mass Balance (MB); or Book & Claim
(B&C).
2.1.4 For RTRS certification, the entity shall disclose whether the agricultural products are certified to the
RTRS Production standard or the RTRS Chain of Custody Standard and whether traceability in the chain
of custody standard is kept through segregation or mass balance.
2.1.5 For other third-party certifications, the entity may specify the type of certification if there are multiple
types.
2.2 The entity may aggregate the percentages of multiple third-party certifications into one aggregate percentage,
if the certifications are for the same agricultural product and deliver similar environmental and/or social
criteria.
3.1 Tier 1 suppliers are defined as suppliers that transact directly with the entity for agricultural products.
3.2 Agricultural products grown on a contract basis include those for which the entity has directly contracted the
conditions of crop production and the quality of crops with the farmer, consistent with the Food and
Agriculture Organization of the United Nations (FAO) "Contract Farming Resource Center."
3.3 Agricultural products sourced as a commodity include those bought through the spot market, to-arrive bids,
grain elevators, or other measures by which the entity is not able to control the production process.
1.1 A major non-conformance is defined as the highest severity of non-conformance and require escalation by
auditors. Major non-conformances confirm the presence of underage child workers (below the legal age for
work or apprenticeship), forced labor, health and safety issues that can cause immediate danger to life or
serious injury, and/or environmental practices that can cause serious and immediate harm to the community.
Major non-conformance includes material breach or systemic breaking of code requirement or law. Major non-
conformances may also be referred to as critical or priority non-conformances.
1.2 A minor non-conformance is defined as a non-conformance that by itself is not indicative of a systemic
problem with the management system. Minor non-conformances are typically isolated or random incidents
and represent a low risk to workers and/or the environment.
1.3 The entity shall calculate the non-conformance rates as the total number of non-conformances (in each
respective category) identified among its supplier facilities divided by the number of supplier facilities audited.
2 The entity shall disclose the (2) corrective action rates associated with its supplier facilities’ (a) major non-
conformances, and separately, (b) minor non-conformances.
2.1 A corrective action is defined as the completion of an action (generally identified in a corrective action plan)
within 90 days, that has been designed to eliminate the cause of a detected non-conformance, including the
implementation of practices or systems to eliminate any non-conformance and ensure there will be no
reoccurrence of the non-conformance, as well as verification that the action has taken place.
3 The entity shall disclose the standard(s) and/or code(s) of conduct to which it has measured social and environmental
responsibility audit compliance.
1.1 Environmental and social risks include, but are not limited to, extreme weather events, water stress,
degradation of the environment, labor rights, community rights, and harmful child-labor practices
2 For environmental risks, relevant strategies to discuss include, but are not limited to, the diversification of suppliers,
supplier training programs on environmental best management practices—including implementation of agricultural
management practice systems (MPS) for fertilizer use, integrated pest management (IPM), and/or efforts to address
deforestation—expenditures on research and development for alternative and substitute crops, and/or audits or
certifications of suppliers’ environmental practices.
3 For social risks, relevant strategies to discuss include, but are not limited to, supplier training programs on
agrochemical application, engagement with suppliers on labor and human rights issues and workforce health and
safety issues such as exposure to pesticides, maintenance of a supply chain code of conduct, and audits or
certifications of suppliers’ social practices.
4 The scope of disclosure includes all agricultural raw materials sourced by the entity, including, but not limited to,
those sourced directly from contract growers or through producer supply agreements.
5 The entity may identify which commodities or agricultural raw materials present a risk to its operations, which risk
they represent, and the strategies the entity uses to mitigate that risk.
Accounting Metrics
2 The entity shall disclose a list of countries and regions that restrict, ban, or have suspended imports of one or more of
the entity’s products due to regulations on GMOs.
2.1 The scope of disclosure includes regulations, trade restrictions, and other measures used to restrict the
importation (whether explicit or de facto) of GMOs, including, but not limited to:
2.1.2 New Zealand Hazardous Substances and New Organisms Act of 1996
2.2 The entity shall discuss the following with respect to each restriction: the scope of products affected, the
length of time the restriction has been in place, the stated reason for the restriction (e.g., health concerns,
biodiversity impacts, or other reasons), and the effect on the entity’s results of operations and financial
condition.
4 The entity shall discuss the risks and opportunities associated with labeling requirements for GMOs, including
regulations or requirements developed by the entity’s downstream customers (e.g., processed food companies and
food retailers).
5 The entity shall discuss the risks and opportunities associated with any changes in consumer preferences regarding
the use and/or labeling of products containing GMOs.
Accounting Metrics
1.1 Principal crops are those crops that accounted for 10 percent or more of consolidated revenue in any of the
last three reporting periods, as disclosed in FB-AG-000.A.
2 The scope of disclosure shall include crops that are cultivated directly by the entity, grown on a contract basis, or
sourced as a commodity.
2.1 Crops cultivated directly by the entity include those grown on farms owned and/or operated by the entity.
2.2 Crops grown on a contract basis include those for which the entity has directly contracted the conditions of
crop production and the quality of crops with the farmer, consistent with the Food and Agriculture
Organization of the United Nations (FAO) "Contract Farming Resource Center."
2.3 Crops sourced as a commodity include those bought through the spot market, to-arrive bids, grain elevators,
or other measures by which the entity is not able to control the production process.
3 The entity shall describe the risks and/or opportunities that are presented to its principal crops by climate change
scenarios, including, where relevant:
3.1 Identification of the risks presented by climate change, including, but not limited to, availability of water, shifts
in crop regions, pest migration, and extreme weather events
3.2 Discussion of the scenarios used to determine the risks and opportunities presented by climate change
3.4 The timeline over which such risks and opportunities are expected to manifest
4 The entity may discuss the methods or models used to develop these scenarios, including the use of global gridded
crop models or scientific research provided by governmental and non-governmental organizations (e.g.,
Intergovernmental Panel on Climate Change Climate Scenario Process).
5 The entity shall discuss efforts to assess and monitor the impacts of climate change and the related strategies to
alleviate and/or adapt to any risks and/or utilize any opportunities (e.g., FAO "Climate-Smart Agriculture" approach.)
5.1 Alleviation strategies include, but are not limited to, use of crop insurance, investments in hedging
instruments, and supply chain diversification.
5.2 Adaptation strategies include, but are not limited to, improving ecosystem management and biodiversity,
development of tolerant crop varieties, and optimizing timing of planting and harvesting.
1.1 Agricultural products are defined as raw materials such as food, feed, and biofuel ingredients that are sourced
for use in the entity’s operations.
2 The percentage shall be calculated as the cost of agricultural products purchased from Tier 1 suppliers that withdraw
and consume water in regions with High or Extremely High Baseline Water Stress for the production of the
agricultural products divided by the total cost of agricultural products purchased from Tier 1 suppliers.
2.1 The entity shall identify Tier 1 suppliers that withdraw and consume water in locations with High (40–80%) or
Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk
Atlas tool, Aqueduct.
3 The scope of disclosure is agricultural products purchased from Tier 1 suppliers, including those grown on a contract
basis or sourced as a commodity.
3.1 Tier 1 suppliers are defined as suppliers that transact directly with the entity for agricultural products.
3.2 Agricultural products grown on a contract basis include those for which the entity has directly contracted the
conditions of crop production and the quality of crops with the farmer, consistent with the Food and
Agriculture Organization of the United Nations (FAO) "Contract Farming Resource Center."
4 If the entity is unable to identify or collect data pertaining to all Tier 1 suppliers, the entity shall disclose the
percentage of agricultural products for which the source region and water risks are unknown
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